DOJ's FBI awards $18.5M contract for relocation services to Cartus Corporation

Contract Overview

Contract Amount: $18,516,327 ($18.5M)

Contractor: Cartus Corporation

Awarding Agency: Department of Justice

Start Date: 2007-10-29

End Date: 2012-03-12

Contract Duration: 1,596 days

Daily Burn Rate: $11.6K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS

Place of Performance

Location: DANBURY, FAIRFIELD County, CONNECTICUT, 06810

State: Connecticut Government Spending

Plain-Language Summary

Department of Justice obligated $18.5 million to CARTUS CORPORATION for work described as: RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS Key points: 1. Contract value appears reasonable given the duration and scope of relocation services. 2. Sole-source award suggests limited competition, potentially impacting price discovery. 3. Contract duration of nearly 4.5 years indicates a long-term need for these services. 4. Fixed-price contract type shifts risk to the contractor. 5. No small business set-aside was utilized for this contract. 6. Geographic scope is national, covering all FBI locations.

Value Assessment

Rating: good

The contract value of $18.5 million over approximately 4.5 years averages to about $4.1 million annually. This figure seems within a reasonable range for comprehensive relocation services supporting a federal agency of the FBI's size. Benchmarking against similar government-wide contracts for relocation services would provide a more precise value-for-money assessment, but the initial estimate suggests fair pricing for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Cartus Corporation, was solicited. This approach is typically used when specific circumstances justify not competing the requirement, such as unique capabilities or urgent needs. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: A sole-source award limits the government's ability to secure the best possible price through market competition, potentially leading to higher costs for taxpayers compared to a competed contract.

Public Impact

Federal employees and their families relocating for FBI assignments benefit from streamlined moving and housing assistance. The contract facilitates the efficient deployment of personnel across various FBI field offices nationwide. Supports the operational readiness of the FBI by ensuring personnel can move to new duty stations without undue burden. Indirectly benefits the workforce by providing a critical support service that aids in retention and morale.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to long-term contract.

Positive Signals

Fixed-price contract shifts performance and cost risk to the contractor.
Cartus Corporation is a known entity in the relocation services market.
Contract duration suggests a stable, ongoing need met by this award.

Sector Analysis

The relocation services sector is a critical support industry for large organizations, including government agencies. This contract falls within the broader professional services category, specifically focusing on personnel relocation. The market includes several large national and international providers capable of handling government contracts. The FBI's spending on relocation is a component of its overall personnel management budget, aimed at ensuring operational effectiveness through timely staff deployment.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no indication of subcontracting requirements for small businesses within the provided data. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract were not prioritized through this procurement vehicle.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the FBI's procurement division. The fixed-price nature of the contract provides some inherent oversight by requiring the contractor to deliver services within the agreed-upon price. Transparency is limited by the sole-source nature of the award, but contract performance metrics and financial expenditures would be subject to internal agency review and potentially audits by the Government Accountability Office (GAO) or the DOJ's Office of the Inspector General.

Related Government Programs

Government-wide Relocation Services Contracts
Federal Employee Relocation Assistance Programs
Department of Justice Personnel Management
FBI Operational Support Services

Risk Flags

Sole-source award justification requires scrutiny.
Potential for above-market pricing due to lack of competition.
Contract performance monitoring is crucial for value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.5 million to CARTUS CORPORATION. RELOCATION SERVICES FOR HOMESALE AND HOUSEHOLD GOODS

Who is the contractor on this award?

The obligated recipient is CARTUS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2007-10-29. End: 2012-03-12.

What is Cartus Corporation's track record with federal relocation contracts?

Cartus Corporation has a significant history of providing relocation services to various federal agencies. As a major player in the relocation industry, they have experience managing large-scale moves for government personnel, including housing, household goods transportation, and miscellaneous relocation allowances. Their federal contract portfolio often includes services for departments such as Defense, State, and Justice. While specific performance metrics for this particular FBI contract are not detailed here, Cartus's longevity and market presence suggest a capacity to meet federal requirements. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties associated with their federal contracts would be necessary for a comprehensive assessment of their track record.

How does the $18.5 million contract value compare to similar federal relocation contracts?

Comparing the $18.5 million value requires context regarding the contract's duration (nearly 4.5 years) and the scope of services provided. This averages to approximately $4.1 million per year. Federal relocation contracts can vary widely based on the agency's size, the number of employees relocated annually, and the specific services included (e.g., home sale assistance, temporary housing, international moves). For a large agency like the FBI, with national and potentially international assignments, this annual spend is likely within the expected range. However, without access to a benchmark database of comparable federal relocation contracts, a precise value-for-money assessment is difficult. Generally, larger, longer-term contracts for comprehensive services tend to have higher total values.

What are the primary risks associated with this sole-source relocation services contract?

The primary risks associated with this sole-source contract stem from the lack of competition. Firstly, there's a risk of paying a higher price than might be achievable in a competitive environment, as Cartus Corporation was the only bidder solicited. Secondly, without competitive pressure, there's a potential risk of complacency in service delivery or innovation. Thirdly, the government may face challenges if Cartus's performance declines, as transitioning to a new vendor could be complex and costly due to the specialized nature of relocation services and the established relationship. Finally, the justification for the sole-source award itself could be scrutinized if it wasn't adequately documented or if alternative solutions were overlooked.

What is the expected effectiveness of this contract in supporting FBI personnel mobility?

This contract is expected to be highly effective in supporting FBI personnel mobility by providing a centralized and professionalized approach to relocation. By outsourcing these complex logistical and financial services to a specialized provider like Cartus Corporation, the FBI can ensure that its employees receive consistent and comprehensive support during moves. This reduces the administrative burden on the agency and allows employees to focus on their new duties rather than the intricacies of moving. Effective relocation services contribute to employee morale, retention, and the swift operational readiness of personnel at new duty stations, thereby enhancing the FBI's overall mission effectiveness.

How has federal spending on relocation services evolved, and where does this contract fit?

Federal spending on relocation services has historically been a significant component of personnel management budgets across various agencies. While specific aggregate data for relocation services alone can be challenging to isolate, overall government spending on professional support services has seen fluctuations driven by agency needs, budget appropriations, and policy changes. Contracts like this one for the FBI represent a portion of that broader spending. The trend has generally been towards consolidating services with fewer, larger providers who can offer economies of scale and comprehensive solutions, often through large indefinite-delivery/indefinite-quantity (IDIQ) contracts or sole-source awards when justified. This $18.5 million contract fits within the pattern of agencies securing long-term, substantial agreements for critical support functions.

Contractor Details

Parent Company: Domus Holdings Corp. (UEI: 800035417)

Address: 40 APPLE RIDGE RD, DANBURY, CT, 05

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,516,327

Exercised Options: $18,516,327

Current Obligation: $18,516,327

Parent Contract

Parent Award PIID: GS23F9762H

IDV Type: FSS

Timeline